Full-Time Employee Costs in Thailand

Understanding Full-Time Employee Costs in Thailand

Introduction

When considering the costs of hiring full-time employees in Thailand, it’s important to factor in more than just salaries. Employers must also consider compliance with legal requirements, social security contributions, and other factors to ensure adherence to Thailand’s labour laws and that employees receive all entitled compensations.

This guide provides a comprehensive overview of the costs involved in hiring and maintaining full-time employees in Thailand.

Key Takeaways

Salary Costs

Minimum Wage

The minimum wage in Thailand is determined by several factors, including the cost of living, inflation rate, and labour productivity growth rate. As of October 1, 2022, the daily minimum wage varies by province:

Province	Minimum Wage Rate (THB/day)
Phuket	370
Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon	383
Chonburi, Rayong	361
Nakhon Ratchasima	352
Samut Songkhram	351
Khon Kaen, Chachoengsao, Chiang Mai, Prachinburi, Phra Nakhon Si Ayutthaya, Saraburi	350
Lopburi	349
Nakhon Nayok, Suphanburi, Nong Khai	348
Krabi, Trat	347
Kanchanaburi, Chanthaburi, Chiang Rai, Tak, Nakhon Phanom, Buriram, Prachuap Khiri Khan, Phang Nga, Phitsanulok, Mukdahan, Sakon Nakhon, Songkhla, Sa Kaeo, Surat Thani, Ubon Ratchathani	345
Chumphon, Phetchaburi, Surin	344
Nakhon Sawan, Yasothon, Lamphun	343
Kalasin, Nakhon Si Thammarat, Bueng Kan, Phetchabun, Roi Et	342
Chainat, Chaiyaphum, Phatthalung, Singburi, Ang Thong	341
Kamphaeng Phet, Phichit, Maha Sarakham, Mae Hong Son, Ranong, Ratchaburi, Lampang, Loei, Sisaket, Satun, Sukhothai, Nong Bua Lamphu, Amnat Charoen, Udon Thani, Uttaradit, Uthai Thani	340
Trang, Nan, Phayao, Phrae	338
Narathiwat, Pattani, Yala	330

Minimum Wage for Foreign Employees

The prescribed minimum income for foreign employees varies by nationality:

Nationality	Minimum Wage Rate per Month (THB)
Europe (including the UK), Australia, Canada, Japan, USA	50,000
Hong Kong, Malaysia, South Korea, Singapore, Taiwan	45,000
China, India, Indonesia, Middle East, Philippines	35,000
Africa, Cambodia, Laos, Myanmar, Vietnam	25,000

Overtime Payment

Employees working beyond regular hours must be compensated at 150% of their hourly rate. Work on holidays or days off is paid at 200% for the first eight hours and 300% for additional hours.

Paid Leave Entitlement

Annual Leave

Employees who have worked for a year are entitled to at least six days of paid annual leave. For those employed for less than a year, leave may be granted on a pro-rata basis.

Sick Leave

Employees are entitled to 30 days of paid sick leave per year. If an employee takes three or more consecutive sick days, a medical certificate may be required.

Maternity Leave

Employees are entitled to 98 days of paid maternity leave, including prenatal visits. The employer pays the full salary for the first 45 days, while the Social Security Fund covers 50% of the salary for the remaining days.

Military Service Leave

Male employees are entitled to up to 60 days of paid leave for military service, including inspections and drills.

Social Security Contributions

Employers and employees each contribute 5% of the employee’s salary to the Social Security Fund (SSF). Contributions range from 83 THB to 750 THB, based on a salary cap of 15,000 THB.

Social security in Thailand covers benefits such as:

Termination Compensation

The Labour Protection Act (No.7) B.E. 2562 (2019) mandates severance pay based on the employee’s length of service:

Employment Period	Rate of Severance Pay
120 days to less than one year	30 days
One year to less than three years	90 days
Three years to less than six years	180 days
Six years to less than ten years	240 days
Ten years to less than twenty years	300 days
Twenty years or more	400 days

How Closer CSS Law Can Help with Your HR Needs

Understanding the full scope of employee costs is crucial for accurate budgeting and financial management. Beyond salaries, costs include healthcare, social security contributions, paid leave, and severance pay.

Closer CSS Law provides professional HR services, including PEO, payroll, and HR administration. Partner with us to handle your staff’s needs seamlessly, without the burden of administrative tasks. Contact us for assistance with your employment and HR requirements. We are here to help.

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